In 2025, the average cost of electricity for residential use was around ***** New Zealand cents per kilowatt-hour. This was a slight increase in the cost of electricity reported in the previous year. New Zealand’s electricity consumption While the leading sector to consume electricity in New Zealand is the residential sector, the industrial electricity consumption follows closely. A slight decrease in consumption has been observed in both sectors. Although the main primary energy supply of New Zealand is sourced from oil, the electricity generation of the country has already become much greener. New Zealand uses an increasing share of renewable energy in its electricity sector, with over ***percent of the electricity production generated by renewable energy. Leading energy source: Hydropower In the distribution of energy sources used for electricity production, hydroelectric power plants generated more than half of the country's electricity. The production of electricity from hydropower has been rising significantly, only experiencing a slight decrease in 2024, while the country saw a decline in the use of fossil fuels. The increased use of hydropower can also be linked to climate change. In 2022, New Zealand experienced the warmest and wettest year on record, resulting in high hydrolake inflows.

In 2025, the average cost of electricity for industrial use was around ***** New Zealand cents per kilowatt hour. This was an increase in the electricity cost compared to the previous year.

In 2025, the average cost of electricity for commercial use was around ***** New Zealand cents per kilowatt hour. This represented an increase in the electricity cost in that sector compared with the previous year.

New Zealand NZ: Industry Electricity Price: USD per kWh data was reported at 0.090 USD/kWh in 2023. This stayed constant from the previous number of 0.090 USD/kWh for 2022. New Zealand NZ: Industry Electricity Price: USD per kWh data is updated yearly, averaging 0.070 USD/kWh from Dec 1990 (Median) to 2023, with 34 observations. The data reached an all-time high of 0.100 USD/kWh in 2021 and a record low of 0.060 USD/kWh in 2001. New Zealand NZ: Industry Electricity Price: USD per kWh data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s New Zealand – Table NZ.OECD.GGI: Environmental: Environmental Policy, Taxes and Transfers: OECD Member: Annual.

The QSDEP is a price indicator series that complements sales-based electricity cost data. The QSDEP indicator is a measure of how the published residential electricity tariffs have changed over time.

In 2024, the average cost of electricity for industrial use was around 17.8 New Zealand cents per kilowatt hour. This was an increase in the electricity cost compared to the previous year.

The Electricity Retailing industry in New Zealand has experienced a challenging five-year period, marked by volatile wholesale markets, relatively flat demand growth and tightening margins. Between 2020-21 and 2022-23, surging wholesale electricity prices created significant cost pressures for retailers, particularly those without generation assets. While retail electricity prices have risen in recent years, they’ve failed to keep pace with earlier wholesale price spikes, leading to a drop in profit margins across the industry. Industry revenue is expected to climb at a modest annualised rate of 2.2% over the five years through 2025-26 to reach $9.8 billion. This includes an anticipated 2.2% rise in 2025-26, driven by stronger demand from households and businesses and modest increases in retail tariffs. Higher billed volumes, supported by recent capacity additions and steady consumption growth, have more than offset the drag from easing wholesale prices. Vertically integrated gentailers like Meridian Energy and Mercury have performed better than standalone retailers. These gentailers have leveraged their renewable generation portfolios to buffer their retail businesses from market volatility, generating strong wholesale returns during periods of tight supply. Both companies have also been early movers in bundling electric vehicle (EV) charging solutions with retail offers, capturing emerging high-margin load segments and strengthening customer loyalty. In contrast, non-gentailers have faced a greater margin squeeze and intensified price-based competition. Regulatory settings have influenced industry dynamics. While distribution and transmission charges remain regulated by the Commerce Commission, the current weighted average cost of capital review has slowed increases in network costs, providing some relief to retailers. However, tighter regulation and the repeal of the low fixed charge tariff regime have shifted pricing dynamics, with retailers adjusting strategies to remain competitive. Looking ahead, industry revenue is forecast to jump at an annualised 2.8% over the five years through 2030-31 to reach $11.2 billion. The stronger outlook reflects rising household and business electricity use as electric vehicles become more common and the population grows, along with modest retail tariff increases to fund network upgrades. Smart meters and enhanced digital platforms will continue to engage customers more deeply in their energy consumption, lifting overall sales. However, with wholesale costs easing and competition intensifying, retailers will need to offer tailored plans, demand response programs and seamless digital experiences to lock in loyalty and boost profitability.

New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data was reported at 3.620 % in Jun 2018. This stayed constant from the previous number of 3.620 % for Mar 2018. New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data is updated quarterly, averaging 3.910 % from Jun 2006 (Median) to Jun 2018, with 49 observations. The data reached an all-time high of 4.030 % in Jun 2017 and a record low of 3.290 % in Mar 2008. New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I004: Consumer Price Index: Weights.

Summary

This schedule presents the results of the Ministry's Quarterly Survey of Domestic Electricity Prices (QSDEP).This schedule presents the results of the Ministry's Quarterly Survey of Domestic Electricity Prices (QSDEP).

Note

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      please refer to the source for accurate and
      timely information.

Graph and download economic data for Consumer Price Index: OECD Groups: Energy (Fuel, Electricity, and Gasoline): Total for New Zealand (CPGREN01NZA657N) from 1960 to 2022 about New Zealand, fuels, electricity, energy, gas, CPI, price index, indexes, and price.

In 2024, the average cost of electricity for commercial use was around 21.34 New Zealand cents per kilowatt hour. This represented an increase in the electricity cost in that sector compared with the previous year.

This report analyses the price paid by commercial consumers to acquire electricity. The data for this report is sourced from Stats NZ (Tatauranga Aotearoa). The historical data for this report uses the average value of a quarterly index over each financial year and is measured in index points. The electricity service price is presented as an index with a base year of 2023-24.

Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data was reported at 3.200 % in 2024. This records an increase from the previous number of 2.800 % for 2023. Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data is updated yearly, averaging 3.750 % from Mar 2015 (Median) to 2024, with 10 observations. The data reached an all-time high of 4.700 % in 2015 and a record low of 2.800 % in 2023. Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I015: Producer Price Index: Weights.

The Ministry monitors national residential electricity costs using information about national electricity sales (essentially total electricity sales divided by the quantity of electricity supplied in kWh).

This report analyses the wholesale price of electricity in the spot market. The prices shown are an average across all market regions in New Zealand (Aotearoa) and are sourced from the Electricity Authority (Te Mana Hiko). The historical data for this report uses the monthly demand-weighted average over each financial year and is measured in dollars per megawatt hour.

The average electricity supply meter import price stood at $103 per unit in March 2025, falling by -34.6% against the previous month.

Graph and download economic data for Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Electricity, Gas and Other Fuels: Total for New Zealand (NZLCP040500GPQ) from Q1 1960 to Q3 2023 about water, New Zealand, fuels, electricity, gas, CPI, price index, indexes, and price.

New Zealand Labour Cost Index: Private: Electricity, Gas & Water Supply data was reported at 1,254.000 Jun2001=1000 in Jun 2010. This records an increase from the previous number of 1,251.000 Jun2001=1000 for Mar 2010. New Zealand Labour Cost Index: Private: Electricity, Gas & Water Supply data is updated quarterly, averaging 1,099.000 Jun2001=1000 from Jun 2001 (Median) to Jun 2010, with 37 observations. The data reached an all-time high of 1,254.000 Jun2001=1000 in Jun 2010 and a record low of 1,000.000 Jun2001=1000 in Jun 2001. New Zealand Labour Cost Index: Private: Electricity, Gas & Water Supply data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.G008: Labour Cost Index: By Industry: Jun2001=1000.

In 2024, the average cost of electricity for residential use was around 33.06 New Zealand cents per kilowatt-hour. This was a slight increase in the cost of electricity reported in the previous year. New Zealand’s electricity consumption While the leading sector to consume electricity in New Zealand is the residential sector, the industrial electricity consumption follows closely. A slight decrease in consumption has been observed in both sectors. Although the main primary energy supply of New Zealand is sourced from oil, the electricity generation of the country has already become much greener. New Zealand uses an increasing share of renewable energy in its electricity sector, with almost 90 percent of the electricity production generated by renewable energy. Leading energy source: Hydropower In the distribution of energy sources used for electricity production, hydroelectric power plants generated more than half of the country's electricity. The production of electricity from hydropower has been rising significantly, while the country saw a decline in the use of fossil fuels. The increased use of hydropower can also be linked to climate change. In 2022, New Zealand experienced the warmest and wettest year on record, resulting in high hydrolake inflows.

The statistic depicts the distribution of the average power bill in New Zealand as of 2018, by associated costs. As of this year, around ** percent of an average power bill in New Zealand went towards the cost of generating the electricity used.